TAugust 2026 Market Update: East Bay Rental Demand Continues to Rise
Positive News for the East Bay Area
The East Bay apartment market continues to show positive momentum. This August update includes a duplex opportunity in Crockett, recent rental activity in Oakland, current market valuations, and updates for East Bay apartment owners and investors.
Beautiful Duplex in Crockett with Amazing Views
This month’s featured property is a beautiful duplex in Crockett with amazing views of the Bay. Located on a quiet street, the property currently has one vacant unit.
Whether you’re looking for a property that can generate income or a place to live, this duplex is a great opportunity.
Click here to see the information and pictures: Crockett Duplex
East Bay Rental Market Update
Positive news for the East Bay Area continues.
The SF Chronicle had an article about 2 weeks ago reporting that the average rent for a 2 bedroom in San Francisco is $6020 per month. The spillover is real for the East Bay!
We recently saw that demand firsthand with a 2-bedroom vacancy in Adams Point, Oakland. The previous tenant was paying $2850, and we remodeled the kitchen and bathroom. On the first day of the open house, I got it rented at $3295. Four to five couples wanted to move forward that morning. Oakland and Berkeley are so in demand right now.
The Bay Area continues to recover to pre-Covid levels. BART numbers are up, as all new jobs are either hybrid or full time in the office.
Artificial Intelligence (AI) companies are also hiring in big numbers. That creates demand for apartments in the City, which in turn creates more demand for good locations in the East Bay. More companies are having employees come back to the offices, and with AI companies leasing thousands of square feet and employees working full time in the office, apartments are in high demand for renters.
We have been there before. When the economy of the Bay Area gets stronger, it affects rental values in a positive way. Renters will look in the East Bay for nice units with lower rents.
Our most recent vacancies have had a lot of interest and have rented the first day after the open house.
For sellers, there are higher offers from buyers as monthly mortgage payments become lower. Buyers can move forward due to lower mortgage rates, lowering their costs and allowing them to be more aggressive.
New Listing
A five unit building two blocks from Grand Ave. (walking distance to shopping and restaurants) will be on the market in late May!
The owners are doing the updates. New windows, new balcony, and decks. New paint!
It will be priced about a 5.7 CAP rate. If you have any interest or if you have any questions, please reach out.
The buyer’s market is pretty strong and I’ve met a lot of buyers who are still looking to buy a multi-unit building.
To see information on my recent listings / sales and previous newsletters, please click East Bay Apartment Advisors.
Current East Bay Apartment Market Valuations
Update: Mortgage rates have dropped to under 6%.
This will get buyers to be more interested in buying investment properties.
As we have been in the higher interest rates for years, buyers are motivated and ready to be looking and investing in investment properties. When the Fed Bank announces their timing for interest rate drops, we should see more of an uptick in activity. The lower the mortgage interest rate, buyers are willing to pay a little more.
Sellers are still getting strong offers for properties that are in good locations, and properties with stable rents and no deferred maintenance issues.
Outlook for East Bay Rents
If you are having trouble getting a vacancy filled or have questions, please reach out.
Remember that it is better to do a “temporary rent reduction” rather than lowering the rent. This is true for existing tenants and new tenants.
Current Sales Market
If you are thinking about selling in the next 6-12 months, then starting the process now would be a good idea. The market is strong, as buyers are still paying prices based on income that is similar to pre-Covid.
How Do I Defer the Capital Gains Taxes?
Two ways:
- Delaware Statutory Trust. Click DST Tax Deferral.
- Doing a 1031 tax deferred exchange.
I did a presentation on increasing your rental revenue at the East Bay Rental Housing Association in January 2025. Click Here: Maximizing the Return on your Investment for the highlights.
Please reach out if you are interested in getting more information on the DST option or 1031 exchange.
My late Fall ’25 recent transaction, a Fourplex in Oakland, went into contract at list price, very short closing and no issues. If priced right and marketed fully, sellers are getting very strong offers.
Current Market for Building Sales
For example, if you want to sell your apartment at this time, I can help you with an evaluation and guidance.
I have spoken to two of the top lenders for East Bay multi-units and they are working on, and closing transactions at this time. I can forward their contact info if you want to speak with them.
Right now, if buyers have a good down payment they can get a loan and I can navigate you through the process.
It is always important to get guidance and advice from experienced multi-unit brokers who will market your property extensively to all potential buyers and brokers.
Posting a new building on all websites and sending out email blasts gives the property visibility to literally tens of thousands of potential qualified buyers.
Looking Ahead
Looking forward to a strong Summer 2026!